Spur Ventures Announces Chinese Government Approval of a Modified Joint Venture Agreement for Yichang Maple Leaf Chemicals

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 05/11/10 -- All amounts are expressed in U.S. dollars, unless otherwise stated

Spur Ventures Inc. ('Spur' or the ' Company') (TSX: SVU)(OTCBB: SPVEF) announced today that it has made significant progress towards creating the conditions required for the transfer of the mining licenses from its partner, Hubei Yichang Phosphorous Chemical Co. ('YPCC') to its Chinese joint venture, Yichang Maple Leaf Chemicals ('YMC'). YPCC is a state-owned enterprise of Yichang City, Hubei Province, PRC.

New Joint Venture Agreement Signed between Spur and YPCC

All required approvals at the city, province and Central China government levels have been received for a modified YMC joint venture agreement which has been signed by Spur and YPCC ('Revised JV Agreement). Hubei Administration for Industry and Commerce ('AIC') has accordingly updated YMC's business license to reflect this modified JV agreement.

This Revised JV Agreement reflects the later deadline for the Registered Capital contributions announced in our April 27, 2010 press release, the new mine valuations noted in our November 13, 2009 press release and an updated and lower estimate of the capital cost of YMC's integrated phosphate fertilizer project.

The newly approved capital cost of the project has been reduced to approximately $382 million (RMB 2.6 billion) from $478 million (RMB 3.2 billion) based on modifications to the mining plan, reduced infrastructure requirements at the mines and fertilizer plant sites and reduced transportation cost assumptions. The new Registered Capital amount is now $117 million (RMB 798 million) instead of the previous $168 million (RMB 1.14 billion).

The Revised JV Agreement provides YPCC with the right to earn a 51% equity ownership in YMC (taking into account previous contributions to YMC) by:

--  Transferring the Dianziping and Shukongping mines to YMC at their
current value of $52 million (RMB 353 million) and
--  Contributing approximately $2.5 million (RMB 17 million) in cash.

Spur has the right to earn a 49% equity ownership in YMC, taking into account previous contributions to YMC of $23.4 million (RMB 158.4 million), by contributing $34.1 million (RMB 231.6 million). Under the terms of the original YMC joint venture agreement signed in November 2003, Spur would have been required to contribute a total of $151 million (RMB 1.03 billion) to earn 90% equity ownership.

The new YMC Board will have 7 members, 4 from YPCC and 3 from Spur with the Chair now being nominated by YPCC and the Vice Chair by Spur.

Spur retains chairmanship and majority control of the Preparatory Committee which manages all tasks and responsibilities related to the capital construction of the project.

YMC Board unanimity is also required for any changes to the JV Agreement and any financing by YMC effectively giving Spur an equal voice in all future project plans and investment decisions.

'An enormous amount of work was required to achieve these important project and capital modifications and this would not have been possible without excellent cooperation between the JV partners and with all departments and levels of the government authorities. Although this has required a lengthy time period and a complicated government approval process, we believe that these modifications are to the ultimate benefit of YMC and the project,' Dr. Rob Rennie, Spur President & CEO explained.

More information can be found in the audited financial statements and the related notes and the management discussions and analysis of the period filed with Canadian regulators on SEDAR at www.sedar.com and on the Company's website: www.spur-ventures.com.

This news release includes certain statements that may be deemed to be 'forward-looking statements' regarding the timing and content of upcoming programs. Although Spur believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include phosphate and potash prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions.

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contacts:

Spur Ventures Inc.

Dr. Robert Rennie

(604) 689-5564 or Toll Free: 1-877-689-5599

(604) 609-9836 (FAX)
rrennie@spur-ventures.com
www.spur-ventures.com